GIF? 


Trading  With  the  Near  East 

Present  Conditions  and  Future  Prospects 


%\  ft  l<  A  *>X^ 

^UWtVERSlTTi 


Guaranty  Trust  Company 
of  New  York 


Trading  With  the  Near  East 

Present  Conditions  and  Future  Prospects 


Guaranty  Trust  Company  of  New  York 

140  Broadway 

FIFTH  AVENUE  OFFICE  MADISON  AVENUE  OFFICE         GRAND  STREET  OFFICE 

Fifth  Avenue  and  44th  Street  Madison  Avenue  and  60th  Street  268     Grand     Street 

LONDON  PARIS  BRUSSELS 

LIVERPOOL  HAVRE  CONSTANTINOPLE 


"Constantinople  has  well  been  described  as  'a  city 
not  of  one  nation  but  of  many,  and  hardly  more 
of  one  than  of  another.'  In  respect  of  influence  over 
the  course  of  human  affairs,  its  only  rivals  are 
Athens,  Rome  and  Jerusalem." 


COPYRIGHT  1920  BY 

GUARANTY  TRUST  COMPANY 

OF  NEW  YORK 


Trading  With  the  Near  East 

esent  Conditions  and  Future  Prospects     V>S,r 


Present 

THE  establishing  of  a  Constantinople 
branch  of  the  Guaranty  Trust  Com- 
pany of  New  York  brings  forcibly  to  mind 
the  growing  importance  of  the  Near  East 
to  American  foreign  trade. 

Before  the  war  merchandise  from  the 
United  States  was  a  negligible  factor  in 
the  business  life  of  Constantinople,  and  a 
vessel  flying  the  Stars  and  Stripes  was  a 
rare  sight.  Today  one  will  find  four  or  five 
American  liners  in  the  Golden  Horn  at  all 
times.  In  addition,  there  are  one  or  two 
steamers  each  month  which  stop  on  their 
way  to  and  from  Batoum,  where  they  dis- 
charge Near  East  Relief  cargoes.  Then 
there  are  the  irregular  visits  of  American 
tramp  steamers.  Today  a  dozen  impor- 
tant American  corporations  have  perma- 
nent offices  there  and  many  other  Ameri- 
can concerns  are  represented  by  local 
agents. 

Up  to  the  present  time  American  busi- 
ness in  Constantinople  has  been  seriously 
handicapped  by  the  absence  of  American 
banking  facilities.  Our  traders  were 
forced  to  rely  on  British,  French,  or  other 
foreign  banks  for  their  financial  transac- 
tions. This  was  not  only  inconvenient 
but  it  was  devoid  of  that  business  secrecy 
which  is  so  necessary  in  exploiting  new 
fields. 

Old  Turkish  Empire  Destroyed 

The  old  Ottoman  Empire,  which  has 
held  sway  over  all  that  mixture  of  races 
from  the  Adriatic  to  the  Persian  Gulf,  and 
from  the  Balkans  to  the  deserts  of  Tripoli 
and  Cyrenaica,  has  been  materially  re- 
duced. New  states  are  in  the  process 
of  formation  in  Arabia,  Mesopotamia, 
Palestine,  Syria,  Cilicia,  Asia  Minor,  Ana- 


pects 

tolia,  Khurdistan,  Armenia,  Thrace,  Ma- 
cedonia and  Albania. 

Constantinople,  that  "bridge  between 
Europe  and  Asia,"  across  which  from  the 
earliest  times  have  passed  and  repassed 
the  forces  that  were  to  determine  the 
course  of  civilization,  is  becoming  once 
more  the  scene  of  an  active  and  ever 
growing  commerce. 

Harbor  Gives  City  Preeminence 

The  importance  of  Constantinople  rests 
almost  entirely  upon  its  position  as  a  cen- 
ter of  water  transportation.  The  local 
industries  are  unimportant  and  few  in 
number,  consisting  mainly  of  manufac- 
tures of  morocco  leather,  saddlery,  to- 
bacco pipes,  fez  caps,  arms,  perfumes,  and 
gold  and  silver  embroideries.  The  rail- 
road which  connects  the  city  with  in- 
terior Europe  and  the  Anatolian  railway 
which  terminates  at  Haidar  Pacha  have 
never  been  extensive  freight  carriers.  It 
is  the  constant  stream  of  ships — ships  of 
all  kinds  and  all  flags  passing  in  and  out  of 
Constantinople  harbor — that  gives  the 
port  its  position  of  preeminence  in  the 
Near  East. 

Situated  at  the  junction  of  the  Bos- 
porus and  the  sea  of  Marmora,  Constan- 
tinople is  practically  an  aggregation  of 
three  towns — Stamboul,  Galata-Pera,  and 
Scutari — besides  numerous  suburbs  scat- 
tered for  a  distance  of  about  twelve  miles 
along  both  sides  of  the  Bosporus.  The 
two  first  named  towns  are  on  the  Euro- 
pean side  and  separated  by  the  Golden 
Horn — the  crescent  shaped  arm  of  the 
Bosporus,  which  forms  a  magnificent 
harbor  one-half  mile  wide  at  the  entrance 
and  six  miles  long  and  capable  of  accom- 


3] 


R51573 


Photograph  from  Wide  World  Photoa 

Aerial  view  of  Constantinople,  showing  the  ancient  city  of  Stamboul  and  the 
famous  mosque  of  St.  Sophia 


modating  twelve  hundred  ships  of  large 
tonnage.  Galata  is  the  banking  and  ship- 
ping district.  Two  iron  bridges  span  the 
Golden  Horn,  connecting  Galata  with 
Stamboul. 

Imports  into  Constantinople  include 
corn,  iron,  timber,  woolens,  silks,  jewelry, 
furniture,  coffee,  sugar,  petroleum,  cotton 
goods,  machinery,  etc.  With  a  city  and 
suburban  population  of  1,800,000,  Con- 
stantinople is  in  need  of  about  50,000 
houses,  because  of  the  many  disastrous 
fires  during  the  last  decade.  During  the 
year  ending  December  31, 1919,  American 
exports  to  Constantinople  amounted  to 
$14,165,285,  and  imports  into  the  United 
States  from  Constantinople  amounted  to 
$20,390,204.  The  principal  commodities 
imported  by  this  country  were  raw  skins, 


opium,  wool,  mohair,  hazel  nuts,  hazel- 
nut kernels,  tobacco,  carpets  and  rugs, 
licorice,  gum  tragacanth,  raw  furs,  rose- 
oil  and  sausage  casings.  Two  of  the 
striking  provisions  of  the  Turkish  Peace 
Treaty  are  the  continuation  of  the  capit- 
ulations and  the  restoration  of  the  11% 
ad  valorem  customs  duties  originally 
fixed  in  1907. 

The  future  possibilities  of  imports  from 
and  exports  to  the  Eastern  Mediterra- 
nean, the  Sea  of  Marmora  and  the  Black 
Sea  ports  from  the  United  States  are  of  al- 
most unbelievable  proportions.  These 
entire  sections  must  be  fed,  clothed,  and 
largely  rehabilitated.  Roads,  ports,  rail- 
ways and  public  works  of  all  kinds  are 
needed  everywhere.  The  merchants  of 
the  Near  East  have  valuable  raw  products 


[4] 


to  send  us  in  exchange  for  the  goods 
so  urgently  needed — boots  and  shoes, 
leather,  rubber,  outer  and  under  clothing 
for  men  and  women,  cutlery,  cottonseed 
oil,  sugar,  bar  and  band  iron,  nails,  car- 
penters' and  machinists'  tools,  automo- 
biles, jams,  and  fats. 

The  Port  of  Smyrna 

Smyrna,  Asia  Minor,  normally  has  a  pop- 
ulation of  about  350,000,  comprising  a  mix- 
ture of  many  nationalities.  The  Turks  and 
Armenians  constitute  the  principal  and 
what  might  be  called  the  native  elements. 
The  Greeks  are  the  largest  foreign  element 
and  the  chief  traders  of  the  port.  The  Ital- 
ians, British,  French,  Dutch  and  Ameri- 
cans follow  in  order.    The  British  colony, 


while  comprising  not  more  than  2,000 
persons,  is  very  influential.  At  the  pres- 
ent time  the  city  is  occupied  by  the  Greek 
Army. 

The  economic  life  of  Smyrna  and  the 
hinterland  has  been  retarded  by  the  war 
through  the  withdrawal  of  labor  and  the 
depreciation  of  such  slight  equipment  as 
was  customarily  used.  At  the  present 
time  there  is  need  for  lumber,  coal,  ma- 
chinery, cotton  goods,  clothing,  shoes,  and 
certain  kinds  of  canned  goods.  Consider- 
able quantities  of  the  last  mentioned 
commodities  are  being  shipped  in,  some 
from  America,  but  a  larger  proportion 
from  the  United  Kingdom.  The  market 
for  lumber  and  machinery  has  not  been 
developed  very  far.    Some  British  coal  is 


Copyright  by  Underwood  &  Underwood 

European  quarter  in  Constantinople,  the  Golden  Horn,  and  Stamboul 

[5] 


Copyright  by  Underwood  &  Underwood 

Karakeul  Street,  the  heart  of  the  banking  district  of  Constantinople 


being  imported.  In  normal  times  the 
chief  exports  from  Smyrna  are  tobacco, 
opium,  figs,  carpets,  licorice  root,  emery 
stone,  chrome  ore,  valonia,  raisins,  skins, 
olive  oil  and  nuts. 

The  lines  specially  suitable  for  Ameri- 
can export  trade  to  Smyrna  are  cotton 


cloth,  plain  and  gray  colors;  thread, 
black  and  white;  cheaper  grades  of  cotton 
and  flannel  underwear,  shirts,  socks, 
stockings,  all  colors  rather  fancy;  burlap 
or  jute  sacks  and  sackings;  sugar;  rice; 
spices — pepper,  nutmegs,  mustard,  etc.; 
standard  medicines  and  drugs — castor  oil, 


[6] 


soda  quinine,  cream  of  tartar,  bandages, 
hospital  supplies,  etc.;  shoes  for  men, 
women  and  children;  cheaper  grades  of 
hardware — wire  nails,  horseshoe  nails, 
horseshoes  (small  sizes),  screws,  saws,  etc., 
spades,  shovels,  picks,  axes;  new  grapho- 
phone  records  and  needles;  toilet  arti- 
cles, perfumery,  etc. ;  tinned  and  bottled 
fruits  and  vegetables;  agricultural  imple- 
ments and  dyes. 

American  exporters  should  quote  their 
prices  c.i.f.  Smyrna,  as  local  merchants 
are  not  as  well  situated  to  follow  the 
fluctuations  in  freight  rates  as  are  the 
American  exporters.  For  the  present,  at 
least,  exporters  should  require  payment 
in  dollars  or  in  sterling  exchange. 

Chance  for  American  Goods 

"There  is  no  reason,"  says  United 
States  Trade  Commissioner  Eliot  G. 
Mears,  "why  the  United  States  should 
not  figure  more  prominently  in  the  trade 
of  Smyrna  and  its  hinterland.  Every- 
where I  met  merchants  who  are  anxious 
to  introduce  American  lines.  American 
made  goods  have  a  first-rate  reputation 
but  are  too  little  known.  If  they  are  to 
find  a  wide  market,  initiative  on  the  part 
of  our  merchants  in  studying  the  market 
and  adapting  their  goods  to  local  require- 
ments is  highly  essential.  The  following 
statement  of  a  United  States  special  agent 
regarding  cotton  goods  in  Turkey  is  ap- 
plicable to  the  conditions  in  Smyrna :  '  By 
studying  the  local  requirements,  the 
habits,  tastes,  and  prejudices  of  the  people 
and  the  business  methods  which  obtain  in 
the  country;  by  securing  competent  and 
exclusive  representatives  to  push  the  sale 
of  goods  and  by  making  fabrics  that  con- 
form in  every  particular  to  the  demands 
of  the  trade;  by  supporting  the  agent 
through  prompt  and  careful  attention  to 
orders  and  shipping  instruction — by  these 


methods,  American  cotton  goods,  particu- 
larly sheetings,  drills,  duck  and  similar 
cloths,  may  be  placed  on  this  market.' " 

Smyrna  has  always  been  regarded  as  a 
market  for  cheap  goods,  and  unless  there 
are  unlooked-for  changes  in  the  character 
of  her  population  she  will  probably  con- 
tinue to  trade  in  this  class  of  goods. 

Kind  of  Products  Wanted 

Austria  and  Germany  prior  to  the  war 
supplied  the  major  part  of  the  small  hard- 
ware trade  in  former  Asiatic  Turkey. 
They  furnished  tacks,  ordinary  nails, 
French  nails,  bolts,  wooden  screws  and 
horseshoe  nails,  except  for  a  small  amount 
of  the  latter  which  are  made  locally. 
Mottled  goods  are  preferred.  Aluminum 
goods  were  introduced  in  this  market  by 
the  Austrians  with  some  success  and  the 
trade  seems  to  be  worth  following  up. 

A  good  many  of  the  ordinary  cooking 
stoves  now  in  use  were  manufactured  in 
Piraeus  and  shipped  from  there  to  Smyrna 
for  distribution.  The  demand  for  stoves 
is  varied  and  includes  cast-iron  and  sheet 
iron,  lined  with  fire  brick;  and  oil  stoves, 
both  for  cooking  and  heating. 

The  trade  in  hinges  and  locks,  espe- 
cially the  cheaper  varieties,  and  also  the 
more  limited  market  for  safety  locks, 
combination  locks,  and  window  locks  of 
stamped  iron  was  controlled  by  Germany. 

The  presence  of  a  British  Army  in  the 
Near  East  has  not  only  had  its  effect  in 
the  districts  immediately  occupied  but  its 
influence  has  spread  over  territory  which 
the  army  itself  has  not  entered.  We  are 
informed  that  there  is  a  vogue  at  present 
for  safety  razors,  few  of  which  were  sold 
before  the  war,  and  that  considerable 
trade  could  be  done  in  pocket-knives  of 
the  types  carried  by  the  troops. 

To  sum  up,  there  is  a  big  demand  for  all 
articles  of  the  kind  Germany  and  Aus- 


[7] 


tria-Hungary  formerly  supplied.  Shef- 
field has  its  eye  on  this  market,  however, 
and  American  firms  must  expect  keen 
competition  in  view  of  the  strengthened 
British  influence  in  the  Levant. 

The  whole  of  Asia  Minor  is  almost  un- 
explored territory  as  far  as  agricultural 
machinery  is  concerned,  and  the  first- 
comer  in  the  market  will  have  a  decided 
advantage.  Livestock  has  almost  dis- 
appeared owing  to  war  operations.  As 
the  draft  animals  remaining  are  mostly 
lightweight  horses  and  bullocks,  the 
only  type  of  agricultural  machinery  pos- 
sible is  lightweight  machinery.  Heavy, 
unwieldy  implements,  if  sold  there,  would 


soon  be  discarded  and  would  hurt  the 
whole  trade,  rather  than  build  it  up. 
There  is  need  for  farm  implements  and 
opportunity  to  build  up  a  lasting  trade 
is  offered  if  local  conditions  are  carefully 
considered  before  goods  are  offered  for 
sale. 

American  exports  to  Smyrna  from 
September,  1918,  to  December,  1919, 
amounted  to  about  $2,500,000.  Ameri- 
can interests  represented  directly  at 
Smyrna  are  concerned  chiefly  with  the 
tobacco  trade,  although  a  number  of 
American  firms  engaged  in  general  im- 
porting and  exporting  have  their  offices  in 
the  city. 


Copyright  by  Und 


The  waterfront  of  Smyrna 
[8] 


Cavalla,  an  important  port  for  Turkish  tobacco 


The  importance  of  Smyrna  as  a  port 
terminal  is  evident  from  the  fact  that 
the  stocks  of  sesame  gathered  into  the 
coast  regions  all  the  way  from  the  Darda- 
nelles to  Adalia  are  sent  there  for  export. 
Wool  exports  from  Smyrna  amounted  to 
about  3,500  long  tons.  Smyrna  is  also  the 
chief  port  of  export  for  the  rugs  which  are 
manufactured  in  all  parts  of  Anatolia. 
During  1919  the  total  shipments  of  Sul- 
tana raisins  from  Smyrna  and  Vourla 
amounted  to  22,500  tons.  The  fig  yield  of 
the  Vilayet  of  Aiden  is  about  23,000  tons 
raised  on  25,000  acres.  The  product  is 
marketed  in  Smyrna,  where  the  figs  are 
packed  in  accordance  with  the  demand 
of  the  region  to  which  the  figs  are  ex- 
ported. 

Smyrna  Center  for  Raw  Materials 

As  an  industrial  center  Smyrna  is  next 
in  importance  to  Constantinople,  although 
it  is  capable  of  very  much  greater  devel- 
opment than  it  has  attained.  Oil  is  manu- 
factured from  the  sesame  and  olives  sent 
there  from  the  surrounding  districts.  The 
city  also  contains  cotton  mills,  corn  mills, 
tanneries,  foundries,  machine  shops,  saw- 


mills, ice  factories,  gas  works,  and  many 
other  industrial  establishments.  The 
commercial  development  of  much  of  Ana- 
tolia, in  fact,  depends  upon  Smyrna,  which 
is  the  natural  center  for  the  handling  of 
certain  necessary  raw  materials. 

Anatolia 

Anatolia  is  said  to  be  practically  a  vir- 
gin field  for  all  sorts  of  agricultural 
and  mining  machinery,  forest  exploitation, 
road  making,  and  all  kinds  of  projects 
connected  with  communications  and  mu- 
nicipal services,  including  water  supplies, 
electric  light,  etc. 

On  the  northern  Anatolian  coast  are 
two  important  ports,  Trebizond,  with 
about  50,000  inhabitants,  and  Samsoun, 
with  about  35,000  inhabitants.  Other 
smaller  ports  at  which  steamers  occa- 
sionally touch  are  Kerasund,  Ordu,  Sinope 
and  Ineboli.  These  Anatolian  ports  are 
trading  centers  from  which  are  exported 
the  products  of  the  hinterland,  such  as 
tobacco,  skins,  wool,  mohair,  nuts  and 
poppy  seeds.  The  imports  are  textiles, 
clothing,  leather  goods,  steel  and  sugar. 
Goods  from  the  interior  of  Anatolia  are 


[91 


Flocks  of 
sheep  in 

Asia  Minor 


Exploiting  the 

lumber  resources 

of  Rumania 


Some  of  the  Industries  an 


by  Underwood  &  Underwood 

Resources  of  the  Near  East 


borne  by  wagon  or  pack,  as  there  are  no 
railroads. 

There  are  valuable  mineral  deposits  in 
northern  Anatolia,  including  coal,  copper, 
manganese  and  chrome.  In  1913  the  So- 
ciete  de  Heracle,  a  French  company  hold- 
ing a  concession  from  the  Turkish  govern- 
ment, produced  more  than  1,000,000  tons 
of  coal,  which  were  shipped  from  the  port 
of  Zonguldak. 

Because  of  the  backward  agricultural 
situation  throughout  the  eastern  Ana- 
tolian provinces,  the  government  has  de- 
cided to  send  twelve  agricultural  motor 
machines  into  the  valley  of  Erzeroum, 
Mouch,  and  Baibant,  as  well  as  a  large 
number  of  other  implements.  A  special 
commission  has  been  created  by  the  Min- 
istry of  Commerce  and  Agriculture  to  at- 
tend to  this  matter. 

Bulgaria 

Bulgarian  trade  is  practically  at  a 
standstill  at  present,  and  there  is  only  a 
very  small  exportable  surplus  of  products 
in  the  country.  The  government  exer- 
cises very  close  supervision  over  exports. 
There  are,  however,  large  quantities  of 
tobacco  and  hides  which  might  be  shipped 


but  which  are  held  inland,  owing  to  the 
bad  condition  of  the  railroads.  Imports 
into  Bulgaria  are  on  a  very  limited  scale. 
The  present  low  value  of  the  leva  makes  it 
practically  impossible  for  Bulgarians  to 
buy  abroad.  Looking  to  the  future,  how- 
ever, it  is  expected  that  crops  will  be  good 
and  gradually  improve  the  economic 
status  of  the  country. 

Need  for  American  Goods 
American  traders  are  just  now  becom- 
ing alive  to  the  trade  possibilities  of 
the  country,  for  Bulgaria  needs  many 
things  which  America  can  provide,  such 
as  agricultural  machinery,  tools,  hard- 
ware, textiles,  clothing  and  leather  goods. 
Bulgaria  can  export  hides  and  skins, 
wool,  tobacco  and  attar-of -roses.  Ex- 
ports amounting  to  $6,426,538  were  in- 
voiced at  the  American  Consulate  of 
Sofia  for  the  United  States  during  the 
last  quarter  of  1919.  Shipments  of  to- 
bacco made  up  $6,157,530  of  this  total. 
For  the  entire  year  of  1914  American 
imports  from  Bulgaria  amounted  to  only 
$440,000. 

It  was  announced  recently  that  a  com- 
mission consisting  of  several  directors  of 


Copyright  by  Brown  &  Dawson 

Athens,  ancient  and  modern,  viewed  from  the  walls  of  the  Acropolis 

[121 


Copyright  t>y  Underwood  &  Underwood 


Piraeus,  one  of  the  main  ports  of  Greece 


the  Bulgarian  State  Coal  Fields  at  Pernik 
would  visit  Italy,  France  and  England  for 
the  purpose  of  purchasing  mining  equip- 
ment for  the  exploitation  of  these  fields. 

Rumania 

The  Rumanian  oil  fields  constitute  one 
of  the  main  resources  of  the  country,  sec- 
ond only  to  agriculture.  During  the  Ger- 
man occupation  many  wells,  refineries  and 
storage  tanks  were  destroyed  or  damaged. 
It  is  reported  that  production  is  about  50 
per  cent,  of  the  pre-war  figure,  but 
transportation  conditions  render  exports 
difficult  at  the  present  time.  Here,  as 
everywhere  in  the  Near  East,  the  inter- 
national exchange  is  the  great  problem  of 
the  day. 

Goods  in  demand  in  Rumania  are  tex- 
tiles, clothing,  glass,  toilet  articles,  etc. 
The  present  imports  are  largely  the  ful- 
fillment of  orders  placed  before  the  slump 
in  exchange.  Rumania  is  badly  in  need  of 
agricultural  and  engineering  machinery, 
road  vehicles,  locomotives  and  freight 
cars.  As  a  rule  buyers  in  Rumania  de- 
mand long  credit.  In  spite  of  the  many 
difficulties  of  the  moment,  those  in  close 


touch  with  the  Rumanian  situation  are 
very  optimistic,  "bullish  arguments"  for 
the  future  being  based  on  the  fertile  soil, 
the  great  oil  production,  and  the  exten- 
sive forests. 

Greece 

The  merchants  and  traders  of  America 
are  finding  another  Near  Eastern  field  of 
enterprise  in  Greece.  In  1913  Greek  ex- 
ports to  this  country  amounted  to  about 
$3,000,000.  In  1918  they  were  valued  at 
more  than  $18,000,000.  American  ex- 
ports to  Greece  rose  from  $1,200,000  in 
1913  to  $31,000,000  in  1916,  dropping  to 
$2,500,000  in  1918,  with  the  decline  in 
war  shipments  of  breadstuffs,  iron  and 
steel,  and  leather. 

British  competition  is  very  keen  in 
Greece,  as  it  is  in  every  Near  Eastern 
market,  as  British  traders  are  much  more 
liberal  than  Americans  in  their  terms,  ex- 
tending credit  where  necessary,  while 
many  American  exporters  still  insist  upon 
"cash  against  documents."  Provided 
that  American  traders  will  meet  the  com- 
petition of  other  traders,  Greece  may  be 
regarded  as  decidedly  friendly  to  Ameri- 


[13] 


Photograph  by  Brown  Brothe 


The  waterfront  of  Salonika 


can  trade.  The  Greeks  know  that  our 
sole  object  in  the  Eastern  Mediterranean 
is  to  see  normal  conditions  restored. 

In  the  rebuilding  of  Saloniki,  a  large 
part  of  which  has  been  destroyed  by  fire, 
there  are  promises  of  the  creation  of  a 
modern  port  which  will  give  access  to  a 
large  territory.  This  hinterland  is  in  need 
of  foodstuffs,  clothing,  household  utensils, 
furniture,  machinery,  construction  ma- 
terials, fuel  and  oil. 

Syria 

An  inquiry  addressed  to  the  American 
Consul  at  Aleppo,  Syria,  regarding  trade 
conditions  in  the  Levant  brought  the 
following  reply: 

"There  are  many  things  to  be  consid- 
ered in  connection  with  the  effort  of  Amer- 
ican firms  to  do  business  in  Northern 
Syria,  the  principal  among  which  are 
transportation  facilities,  sources  of  prod- 
ucts, insurance,  exports,  imports,  terms 
of  sales,  banking,  etc." 

[14 


Several  American  lines  are  now  operat- 
ing between  the  United  States  and  Medi- 
terranean ports.  In  addition,  there  are  all 
of  the  transatlantic  lines,  with  transship- 
ment in  British,  French  and  Italian  ports. 

All  local  transportation  is  carried  on 
much  the  same  way  as  in  pre-war  times, 
from  the  interior  to  Aleppo  and  the  port 
of  Alexandretta,  Syria,  by  camel,  horse, 
mule  and  donkey  pack,  or  in  wagons,  and 
by  rail  from  Aleppo  to  Beirut,  Syria,  with 
no  immedate  prospect  of  a  change. 

Wool,  hides  and  skins  and  sheep  butter 
are  produced  in  great  quantities  in  the 
interior,  in  the  vicinities  of  Mosoul,  Diar- 
bekir,  Deir-el-Zor,  Mardin,  Ourfa,  Hama, 
etc.,  olive  oil  in  Killis  and  Aintab  districts, 
silk  in  the  districts  of  Antioch  and  Alex- 
andretta, pistachio  nuts  in  the  Aintab 
and  Aleppo  districts,  gall-nuts  and  gum- 
Arabic  (Tragacanth)  in  the  interior  places 
surrounding  Diarbekir,  Mosoul,  etc.,  and 
laces  and  crochet  in  Marash,  Aintab, 
Ourfa  and  Aleppo. 
1 


All  the  foregoing  are  collected  by  and 
exported  through  the  Aleppo,  Aintab  and 
Alexandretta  commission  houses  and  gen- 
eral exporters. 

An  up-to-date  tannery  would  do  a  fine 
business  in  Aleppo,  as  all  good  leather  is 
imported  from  America  and  Europe,  where 
the  local  supplies  of  raw  hides  and  skins 
are  exported  to  be  tanned. 

An  American  firm  desiring  to  open  a 
branch  in  Aleppo  would  have  no  difficulty 
in  obtaining  office  help  conversant  with 
English,  Arabic  (the  language  of  the  coun- 
try), Turkish,  French,  Italian,  German, 
Greek  and  Armenian. 

The  marine  insurance  companies  oper- 
ating here  are  exclusively  French  and  Brit- 
ish, no  American  companies  being  repre- 
sented. 

The  two  foreign  banks  operating  in 
Aleppo,  with  representatives  in  the  out- 


side cities  of  this  district,  Turkey,  Egypt, 
Europe  and  the  United  States,  are  the 
Imperial  Ottoman  Bank  and  the  Banco 
di'Roma,  the  latter  having  been  estab- 
lished in  1919. 

Import  customs  duties  are  11  per  cent, 
and  export  duties  one  per  cent,  ad  va- 
lorem. 

Demand  for  Our  Products 

The  ports  of  Northern  Syria  are  Alex- 
andretta and  Beirut.  Parcels  post  facili- 
ties exist  between  the  United  States  and 
Syria.  Samples  should  be  sent  when  nec- 
essary and  prices  and  discount  should  be 
mentioned. 

There  is  an  increasing  demand  in  Bei- 
rut for  American-made  products,  as  the 
people  are  growing  more  accustomed  to 
them.  Drugs,  soap,  wax,  cement,  ready- 
made  shoes,  automobiles,  hardware,  ho- 


Copyright  by  Underwood  A  Underwood 


The  harbor  of  Beirut,  Syria 
[15] 


Copyright  liy  Underwood  &  Underwood 

Spinning  silk  from  cocoons  to  make  cloth  for  domestic  use  in  Antioch,  Syria 


siery  and  underwear,  iron  safes,  typewrit- 
ers and  agricultural  machinery  are  being 
imported  into  Syria  from  the  United 
States. 

Palestine 

The  American  Consul  at  Jerusalem 
sends  the  following  information  regarding 
the  trade  outlook  in  the  Holy  Land: 

"One  of  the  Palestinian  ports  will  in  the 
future  capture  a  larger  part  of  the  trade  of 
the  Mediterranean  and  Western  Asia  from 
the  Hellespont  to  Bab-El-Mandeb.  Rail- 
roads  from   Haifa   traversing   Northern 

[16 


Galilee  and  branching  northward  through 
the  Geb-Syrian  Plain  to  the  Bagdad  Rail- 
road, the  Hedjas  Railway  opening  the 
East  of  the  Jordan  passing  through  the 
rich  wheat  fields  of  the  Hauran  and  one 
day  to  stretch  forward  through  the  rich 
territory  limited  by  the  Euphrates  and 
Tigris,  railways  probably  stretching  along 
the  coast  of  Africa  from  Cairo  to  the 
Cape,  making  it  probable  that  Jerusalem 
may  become  the  station  leading  to  Cal- 
cutta— all  this  opens  a  prospect  for  the 
possibilities  of  Palestine  that  rests  upon 


a  more  solid  foundation  that  the  imagi- 
nation. No  wonder  ancient  armies  found 
this  land  the  most  convenient  thorough- 
fare for  their  marches  and  conquests,  and 
that  this  was  the  land  of  transit  in  by- 
gone days  from  the  West  to  the  East, 
and  that  1400  years  B.  C.  Jerusalem  had 
an  Egyptian  governor. 

"The  foreign  trade  of  Palestine  may  be 
retarded  for  a  while;  its  development 
must  necessarily  be  comparatively  slow. 
The  land  must  first  of  all  have  ports,  good 
roads,  abundant  water,  reforestation,  a 
stable  and  just  government  guaranteeing 
and  encouraging  a  large  population  capa- 
ble of  producing  wealth  and  educated  to 
appreciate  the  requirements  of  Western 
modern  life. 

"The  export  capacity  of  Palestine  is 
divided  between  wine,  raisins,  oranges, 
almonds,  oil,  hides,  wool  and  grain.  A 
yearly  crop  of  2,000,000  boxes  of  oranges, 
famous  on  the  markets  of  J  Egypt  and 
Europe,  speaks  for  itself,  and  the  almond 
industry  will  eventually  be  quite  as  profit- 


able as  the  orange.  In  this  connection  at 
once  may  be  seen  America's  great  oppor- 
tunity in  furnishing  irrigation  devices, 
agricultural  implements,  wood  and  silk 
paper.  Palestine,  living  and  depending 
chiefly  on  the  States,  will  gladly  stand  in 
closest  touch  with  American  manufac- 
turers. As  has  been  repeatedly  pointed 
out  by  this  Consulate,  the  key  of  success  to 
American  trade  with  this  country  is  direct 
steamship  lines,  banking  facilities,  prac- 
tical terms,  and  personal  touch  by  capa- 
ble and  tactful  salesmen." 

Should  Launch  American  Label 

Our  American  manufacturers  must  not 
despise  the  trade  in  small  things .  Small  or- 
ders as  well  as  big  orders  have  to  be  looked 
after,  and  the  former  generally  precede 
the  latter.  The  primary  object  of  the  ex- 
porter in  the  United  States  should  be  to 
launch  the  American  label  and  grow  gradu- 
ally with  the  development  of  the  country. 

The  aim  qf  those  interested  in  foreign 
trade  should  be  not  only  to  push  forward 


Copyright  by  Brown  &  Dawson 


Looking  from  the  Mount  of  Olives  over  the  City  of  Jerusalem 
[.17] 


Copyright  by  Underwood  &  Underwood 


A  caravan  approaching  Jaffa 


specific  American  goods  already  known, 
but  to  introduce  any  and  all  American 
products  bearing  the  unimpeachable  trade 
mark  "Made  in  America."  It  is  advis- 
able to  depart  from  the  former  methods 
and  restrictions,  and  to  assume  the  re- 
sponsibilities of  a  world-wide  purveyor. 
Let  our  merchants  be  resourceful  in  new 
ideas  and  enterprises  regarding  the  pro- 
motion and  extension  of  foreign  trade. 
If  they  are  faithful  to  their  reputed  and 
characteristic  ability  America  soon  will 
have  "the  right  of  way." 

When  the  world's  trade  becomes  normal 

[ 


and  things  again  begin  to  run  smoothly 
Palestine  will  fully  deserve  the  credit  of 
American  exporters. 

Persia 

Persia  is  another  country  of  the  Near 
East  to  which  attention  must  now  be 
paid.  The  Ministry  of  Commerce  of 
Persia  has  created  an  information  bureau 
at  Teheran  for  the  purpose  of  furnishing 
reliable  information  on  all  matters  con- 
nected with  the  importation  and  exporta- 
tion of  merchandise  in  Persia.  Those 
interested  in  Persian  markets  are  asked 


is; 


to  submit  the  following  information  with 
their  request  to  the  Bureau  at  Teheran: 
Name  of  firm,  size  of  firm,  home  office, 
telegraphic  address,  credit  rating,  articles 
of  production,  catalogues  and  a  state- 
ment of  the  merchandise  which  they 
desire  to  export  to  Persia. 

There  are  no  factories  or  mines  in 
Persia,  and  only  a  few  light  railways. 
The  capitalistic  class  is  represented  by 
owners  of  villages,  houses,  and  shops, 
and  labor  is  represented  by  the  peasants. 
Blacksmiths,  tanners,  masons,  butchers, 
cotton  workers,  and  other  artisans  and 
ordinary  government  workers  form  a  small 
middle  class.  Rug  weavers  are  not  a 
separate  class,  the  weaving  being  done 
by  the  peasant  women  and  children. 

Lower  Transportation  Rates 

Rates  of  transportation  for  goods  be- 
tween the  Persian  Gulf  and  Teheran  have 
materially  lowered,  being  only  about  four 
times  higher  than  the  pre-war  prices, 
whereas  previously  they  were  about  ten 
times  higher. 

The  Persian  customs  regulations  and 
rates  are  in  the  course  of  revision,  in  ac- 
cordance with  one  of  the  terms  of  the 
recent  Anglo-Persian  agreement.  Of 
course,  rugs  form  the  main  article  of  ex- 
port from  Persia  to  America,  but  a  few 
months  ago  an  American  buyer  secured 
and  sent  to  the  United  States  over  40,000 
lambskins. 

Unfortunately,  the  quality  of  goods  sent 
to  Persia  by  some  American  firms  has  been 
very  poor  and,  although  large  profits  were 
made,  they  may  prejudice  the  Persian 
market  against  American  goods. 

Americans  should  be  careful  to  send  to 
Persia  only  those  articles  which  the  Per- 
sians want.  For  instance,  although  the 
Persians  much  admire  and  prefer  the 
"bulldog,"  square  raised  toes  on  shoes, 
one  of  the  large  consignments  recently 

[19 


sent  to  Persia  was  made  up  entirely  of  the 
prevailing  mode  with  sharp  pointed  toes. 
The  Persians  have  large,  broad  feet  and 
since,  as  a  nation,  they  are  just  beginning 
to  wear  real  shoes,  they  must  have  them 
as  comfortable  as  possible.  They  should 
be  supplied  with  what  they  want  and  not 
with  what  we  think  they  should  have. 

General  Remarks  on  Near  Eastern 
Trade 

It  cannot  be  too  strongly  emphasized 
that,  if  America  is  to  obtain  her  share  of 
trade  in  the  Near  East,  she  must  estab- 
lish herself  now,  otherwise  the  other  in- 
dustrial nations  will  be  so  firmly  en- 
trenched that  the  American  trader  will 
find  serious  difficulties  in  his  path. 

It  should  be  borne  in  mind  that  nations 
like  Great  Britain,  Germany,  France,  and 
Italy  know  a  great  deal  more  about  the 
markets  of  the  Near  East  than  we  do. 

Our  chief  competitor  will  undoubtedly 
be  Great  Britain.  A  large  number  of 
British  traders  are  already  on  the  ground 
in  every  country  of  the  Near  East.  There 
are  British  warships  in  every  harbor  and 
British  military  forces  in  many  cities, 
messengers  of  peace  and  security  for  these 
oppressed  communities  which  are  building. 
up  a  strong  pro-British  sentiment  which 
assuredly  will  have  an  important  influ- 
ence in  favor  of  British  trade. 

It  must  not  be  overlooked  that  Germany 
also  will  make  strong  efforts  to  regain  her 
former  trade  in  these  countries  as  soon  as 
she  is  equipped  to  do  so. 

The  Near  Eastern  markets  have  a  fu- 
ture which  is  full  of  promise.  They  have 
enormous  resources,  both  developed  and 
undeveloped,  in  fields  and  forests,  oil  de- 
posits and  mines. 

NOTE: — Acknowledgment  ia  made  of  the  assistance 
rendered  by  the  Near  East  Division  of  the  United 
States  Bureau  of  Foreign  and  Domestic  Commerce,  by  the 
Department  of  State,  and  by  the  United  States  Shipping 
Board,  in  the  compilation  of  facts  and  figures  presented 
herewith. 


THE  Guaranty  Trust  Company  of  New  York, 
with  its  own  banking  offices  in  New  York, 
London,  Liverpool,  Paris,  Havre,  Brussels,  and 
Constantinople,  offers  its  facilities  to  bankers, 
manufacturers,  and  merchants,  and  invites  them 
to  consult  the  officers  of  its  Foreign  Department 
regarding  the  most  economical  and  practical 
methods  of  financing  the  foreign  business  that  is 
resulting  from  the  new  position  of  the  United 
States  among  the  nations  of  the  world. 

In  addition  to  these  offices,  the  Company  has 
affiliated  institutions  which  operate  in  particular 
fields,  and,  finally,  has  more  than  one  thousand 
correspondents  through  which  it  is  in  direct  and 
constant  communication  with  every  foreign  trade 
center  of  any  importance.  Many  of  these  corre- 
spondents are  among  the  leading  banking  insti- 
tutions of  the  world;  they  have  long  been  estab- 
lished in  their  respective  localities,  and  are  thor- 
oughly familiar  with  local  commercial  and  finan- 
cial conditions. 

Through  this  great  organization  of  branches  and 
correspondents,  the  Guaranty  Trust  Company  of 
New  York  provides  direct,  safe,  and  prompt  bank- 
ing service  with  every  part  of  the  globe. 


WIU-  »NCREASE  TO  50qCENthe    ^^     daY 

DAY     AND    TO    *!•«<-. 

OVERDUE. 


Gayiamount 

Pamphlet 

Binder 

Gaylord  Bros.,  Inc. 

Stockton,  Calif. 
T.M.  Reg.  U.S.  Pat.  Off. 


/ 


1751 573 


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